Official: Iran loses $140 million daily to fuel smuggling as tracking systems fail

Iran is losing between 20-28 million liters of fuel daily to smuggling operations, costing the country $140 million in potential export revenues each day, according to a member of Iran's Anti-Smuggling Headquarters.

The staggering losses, revealed during a government economic panel, could theoretically provide every Iranian citizen with 4 million tomans in annual subsidies if recovered.

The figures emerged as officials reviewed the failed implementation of Iran’s SIPAD and SEPHTAN fuel monitoring systems, approved in 2014 but still not fully operational over a decade later.

Jafar Jamili, deputy of traffic safety at Iran’s Road Maintenance and Transportation Organization, acknowledged technical and security issues have prevented proper installation, with only 110,000 of 320,000 vehicles currently equipped with the tracking devices.

Energy experts estimate total annual losses from fuel smuggling and diversion at 9 billion, including 450-500 million liters of diesel smuggled each year.

Officials have pledged to revive the tracking systems while calling for fuel price liberalization and consolidation of vehicle monitoring programs to curb losses that now represent a significant drain on Iran’s sanctioned economy.

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